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Central Texas homeowners face a wide range of property tax rates depending on their city and school district. Texas already ranks among the highest in the nation for property taxes (around 1.6–1.8% of home value on average) due to the lack of a state income tax. In this article, we’ll compare residential property tax rates across Liberty Hill, Cedar Park, Leander, Georgetown, Hutto, Round Rock and other Central Texas cities. We’ll look at current effective tax rates, typical taxing entities (city, county, school district, etc.), and available exemptions like the homestead and over-65 exemptions. We’ll also discuss how these differences impact your financial planning – from monthly cash flow and home affordability to retirement budgeting – especially for families and retirees relocating to Central Texas. The goal is to help you make informed decisions in a friendly, professional manner, just as you’d expect from a local financial advisory firm.
Texas Property Tax Basics: In Texas, property taxes are levied by local jurisdictions – primarily school districts, counties, cities, and special districts – to fund public services like schools, roads, police, fire departments, and libraries. There is no state property tax and no state income tax, so local property taxes are a key revenue source for communities. Property tax rates are expressed per $100 of assessed value. For example, a rate of $2.00 per $100 equals a 2% tax on the home’s value.
Taxing Entities and Rates: A typical Central Texas homeowner’s tax bill is a sum of rates from several entities:
County: All the cities discussed are primarily in Williamson County (WilCo). WilCo’s 2024 county tax rate is about 0.0443. Combined, that’s roughly $0.40 per $100 of value that nearly everyone pays for county services.
School District (ISD): Each city is served by an independent school district with its own tax rate (often the largest portion of the bill). For example, Round Rock ISD’s rate is $0.8931 per $100 (driven down by recent state-mandated compression of school taxes), whereas Hutto ISD’s rate is $1.2052 per $100. ISD taxes fund public schools and usually make up 50% or more of the total property tax.
City: If the property is inside city limits, the city levies its own tax for municipal services. City rates vary widely – e.g. Cedar Park’s city tax is $0.3630, while Liberty Hill’s is higher at $0.4830 per $100. Some smaller cities or those with less commercial tax base tend to have higher rates to fund their budget.
Special Districts: Depending on location, there may be additional small taxes for junior college districts, utility districts, or emergency services. In much of Williamson County, Austin Community College (ACC) district adds roughly $0.10 per $100 (if the area has been annexed into ACC). Certain neighborhoods have Municipal Utility Districts (MUDs) or Emergency Services Districts (ESDs) that levy their own taxes (often around $0.05–$0.15 per $100, though MUD rates can be higher early in a development).
Each taxing unit sets its rate annually, subject to state law limits and voter approval in some cases. Property owners receive a single bill (per county) that combines all applicable rates. Below, we compare how these rates add up in our selected Central Texas cities.
Williamson County 2024 Tax Rates and Exemptions
Let’s summarize the approximate effective property tax rates in 2024 for several Central Texas cities. The effective rate means the total tax as a percentage of a home’s appraised value, reflecting the combined impact of city, county, and school district taxes (excluding any individual exemptions).
Here are the notable differences:
Liberty Hill: 1.72% – Liberty Hill residents pay Liberty Hill ISD taxes (around $1.17 per $100) and city taxes ($0.48) on top of county taxes. This fast-growing community has needed revenue for new schools and infrastructure, driving its rate to roughly the Central Texas average.
Cedar Park: 1.70% – The city has a moderate municipal rate ($0.36) and is mostly in Leander ISD (~$1.09 per $100). Parts of Cedar Park fall under Round Rock ISD (which has a lower rate), helping keep the overall effective rate in this city relatively modest.
Leander: 1.81% – Leander’s total rate is on the higher side. The city tax ($0.42) and Leander ISD taxes (~$1.09) combined with county taxes yield an ~1.8% effective rate. Leander’s rapid growth and infrastructure needs have kept its rates somewhat elevated.
Hutto: 1.78% – The city rate ($0.40) and Hutto ISD’s rate (~$1.21) are both on the higher end, reflecting Hutto’s smaller tax base and big investments in new schools (“Hippo Nation”). Hutto is growing quickly, but until more commercial development balances the tax base, homeowners shoulder a larger share.
Round Rock: ~1.80% – In Round Rock, the median effective rate is about 1.8%, similar to Leander. The city’s tax rate is a relatively low ($0.36) thanks to a strong commercial base, and Round Rock ISD’s rate has dropped under $0.90 with recent tax reforms. This has made Round Rock’s total a bit lower than it was a few years ago. (Note: Round Rock’s rate applies to homes within the city; those in its extraterritorial area might pay a different ESD instead of city tax.)
For context, Austin’s effective property tax rate is around 1.6% – a touch lower than many suburbs, partly because the City of Austin has a broad tax base (though Austin’s housing prices are much higher). Smaller outlying towns in Central Texas can vary: for instance, Pflugerville is roughly 1.82% and Taylor about 2.0% in recent years. Always consider the specific combination of city and ISD when comparing rates, since that often drives the differences more than county taxes.
Texas offers several property tax exemptions to reduce the burden for homeowners, especially seniors:
General Homestead Exemption: This is a discount on a primary residence’s assessed value. In 2023, Texas raised the homestead exemption for school district taxes from $40,000 to $100,000. This means the first $100k of your home’s value is not taxed by the school portion, saving the average homeowner hundreds per year. Counties and cities can also offer an optional homestead exemption (up to 20% of value). For example, Williamson County grants a 5% homestead exemption to resident homeowners. Some cities do as well – Georgetown gives 5% – while others like Cedar Park and Leander offer a token 1% or a minimal fixed amount. (Many fast-growing cities choose a small homestead exemption to preserve more revenue for services.) Either way, you must apply for the homestead exemption with the county appraisal district to receive these benefits, but you only need to apply once after you purchase and occupy the home.
Over-65 (Senior) and Disabled Person Exemptions: Homeowners 65 or older (and those who are disabled) get an additional $10,000 exemption on school taxes beyond the general. Local entities often grant their own senior exemptions too. For instance, the City of Cedar Park offers seniors an extra $30,000 off their city property valuation and Round Rock provides a $22,000 senior exemption. Williamson County recently increased its over-65 exemption to $125,000 (one of the most generous in Texas), massively reducing county taxes for seniors. These exemptions reflect a recognition that retirees on fixed incomes need relief from rising taxes.
Tax Ceiling (“Over-65 Freeze”): Importantly, once you receive an over-65 exemption, your school district tax bill is frozen – it cannot increase in dollar amount going forward, no matter how much your property value or tax rate rises. (Improvements to the home, like additions, may adjust the freeze level upward, but routine appreciation won’t.) Many cities and counties also adopt a tax ceiling for seniors and disabled homeowners – noted as “Local Option Freeze” in tax records. In our region, all the major cities we’re comparing (and Williamson County itself) have adopted this freeze. This means, for example, a 70-year-old Round Rock homeowner will pay the same city tax each year as they did at age 65, providing peace of mind against tax hikes. Note: To benefit from the freeze, you must have the over-65 exemption in place.
Disabled Veteran Exemptions: Texas grants substantial property tax exemptions for disabled veterans. These range from $5,000–$12,000 off the assessed value (depending on disability rating) up to a 100% exemption for 100% disabled veterans. Surviving spouses may also qualify. This can virtually eliminate property taxes for some veteran households. (These exemptions are in addition to the homestead exemption and are available even for veterans under 65.)
Tax Deferral for Seniors: An often overlooked option – if you are 65+ and struggling with property taxes, Texas allows you to defer your property tax payments on your homestead until you sell the home. No foreclosure can happen during a deferral. Interest (5% annual) will accrue, and the accumulated tax will eventually need to be paid (from the sale or estate), but this provision can be a lifesaver for cash-strapped retirees who want to age in place. It’s essentially an interest-controlled reverse lien that ensures no senior is forced out of their home due to taxes. If needed, an application for deferral is filed with the appraisal district. (As financial advisors, we’d suggest using this only as a last resort, but it’s good to know it exists.)
Bottom line: The homestead and senior exemptions in Texas can dramatically lower your tax bill. For example, a homeowner over 65 in Georgetown with a $300,000 house might have $100k (homestead) + $10k (over-65) = $110,000 exempt on school taxes, plus perhaps a $12,000 exemption on city taxes – and their school taxes are now frozen going forward. Always check your county appraisal district’s list of exemptions to make sure you’re receiving everything you qualify for. It can mean thousands in annual savings.
Property taxes aren’t just numbers on a bill – they directly affect your monthly budget, long-term savings, and even decisions on where to live. Here are a few key considerations:
Monthly Cash Flow and Home Affordability: Property taxes are typically bundled into your monthly mortgage payment (via an escrow account), affecting how much house you can afford. A higher tax rate can add hundreds of dollars to your monthly housing cost. For example, a $400,000 home in an area with a 2.0% tax rate will cost about $8,000/year in taxes, whereas at a 1.6% rate it would be $6,400/year – a difference of $1,600 annually (about $133 per month). Lenders account for this when qualifying you for a loan, and you should account for it in your own budget. In practice, if you move from a city like Georgetown (lower taxes) to a higher-tax area like Leander or Hutto, a comparable-priced home could carry a noticeably larger tax escrow payment. Homebuyers should compare not just home prices but also the effective tax rates of different areas in Central Texas, because it affects overall affordability. Over the long run, property taxes generally rise as home values appreciate (capped at 10% per year for homestead properties in Texas), so a difference of a few hundred dollars a year today could grow over time.
Retirement Budgeting and Relocation Decisions: For retirees on fixed incomes, property taxes can be one of the biggest ongoing expenses of homeownership – sometimes rivaling maintenance or insurance costs. When you’re no longer earning a paycheck, a high property tax bill can put pressure on your retirement withdrawals. This is why many retirees downsize or relocate to areas with lower taxes or better exemptions. Within Central Texas, a retiree might favor Georgetown or parts of Round Rock for their senior-friendly tax policies (lower rates, generous exemptions and tax freeze) over a higher-tax city with fewer exemptions. If you’re relocating to Central Texas from out of state, it’s vital to understand that while our housing may be relatively affordable, the property taxes can be substantial. Texas is overall tax-friendly for retirees (no income tax, no tax on Social Security) but you’ll want to budget for property taxes for the long haul. The over-65 freeze and deferral options can provide stability and relief – make sure to plan for and utilize them. We often work with clients to project their property taxes decades into retirement and incorporate that into their withdrawal strategy (including factoring in that, for example, school taxes will stop increasing once the tax ceiling is in place).
Family Considerations – Taxes vs. Services: For families moving within or to Central Texas, property taxes are a double-edged sword. On one hand, higher taxes (especially school taxes) often correlate with well-funded local schools, parks, and city services that benefit your family’s quality of life. For instance, Liberty Hill’s and Hutto’s above-average tax rates are helping build new schools and amenities for their growing populations. On the other hand, those higher annual costs might mean cutting back elsewhere in the family budget. A difference of even 0.2% in the tax rate could mean an extra $50–$100 per month on a typical family home – money that could go toward childcare, college savings, or other bills. Families should weigh what they get for the taxes (better schools, safer neighborhoods, etc.) against what they pay. If you’re considering buying in (or relocating to) a specific school district, look at both the school’s reputation and its tax rate. For example, Round Rock ISD’s tax rate reduction in recent years might tip the scales for some families comparing Round Rock vs. Hutto or Leander, potentially saving them money while still providing solid schools. Every family’s priorities are different – some might gladly pay a bit more tax for a larger home or yard in a suburban district, while others might prefer a lower-tax locale and redirect the savings to private school or extracurriculars.
Strategic Planning Tip: Because property taxes can significantly affect cash flow, it can be worthwhile to periodically appeal your property valuation if you believe it’s assessed too high. Central Texas home values have risen quickly, and appraisal districts sometimes make mistakes. Lowering your assessed value through a successful protest directly lowers your tax. As advisors, we remind clients to review their annual appraisal notice and consider an appeal (or hire a property tax consultant) if the value seems off. This is another way to manage your property tax burden within the rules.
Property taxes will always be part of the equation when owning a home in Central Texas. The key is to be informed and proactive. By understanding the differences in tax rates between Liberty Hill, Cedar Park, Leander, Georgetown, Hutto, Round Rock and surrounding areas, you can make smarter decisions about where to live relative to your budget and needs. Use the available exemptions – they exist to help make homeownership more affordable, especially in a high-tax state like Texas. And factor taxes into your long-term financial planning: whether it’s ensuring your retirement income can comfortably cover your paid-off home’s taxes, or choosing a community where the taxes align with the public services and lifestyle your family values.
In summary, Central Texas offers a variety of living environments – from the quaint small-town feel of Liberty Hill to the bustling suburbs of Round Rock – and each comes with its own property tax profile. A financial advisor familiar with the local area can help you evaluate these differences in the context of your overall financial plan, so you’re not caught off guard. With thoughtful planning, you can manage property taxes and still enjoy the many benefits of calling Central Texas home.
Disclaimer: This article is intended for informational and educational purposes only and does not constitute legal, tax, or financial advice. Tax rates and exemption amounts are subject to change and may vary based on individual property details and jurisdictions. While we strive to provide accurate and current information based on publicly available sources, including the Williamson County Tax Office, readers should consult directly with their local appraisal district or a qualified tax professional for personalized guidance. Axon Capital Management is a registered investment advisor in the state of Texas and provides financial planning and investment advice to clients in Texas and other states where exempted. All examples are hypothetical and for illustrative purposes only.
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Brady is the founder and lead Financial Planner at Axon Capital Management. Beyond his role at Axon, Brady is an active blogger and content creator, sharing valuable insights on financial planning and wealth management.
